{"id":18222,"date":"2020-10-28T08:00:37","date_gmt":"2020-10-28T08:00:37","guid":{"rendered":"https:\/\/www.barnesroffe.com\/?p=18222"},"modified":"2022-02-10T17:12:46","modified_gmt":"2022-02-10T17:12:46","slug":"chancellor-extends-vat-cut-until-march","status":"publish","type":"post","link":"https:\/\/barnesroffe.com\/blog\/chancellor-extends-vat-cut-until-march\/","title":{"rendered":"Chancellor extends VAT cut until March"},"content":{"rendered":"

<\/a>The temporary reduced standard VAT rate of 5% for the tourism and hospitality sector was due to end on 12 January, but has now been extended to 31 March 2021. <\/strong><\/h3>\n

With Covid-19 restrictions continuing for the foreseeable future, this winter is likely to be quite challenging for many tourism and hospitality businesses, so the extension will be welcomed across the sector.<\/p>\n

The current reduced rate applies to food and non-alcoholic drinks from restaurants, pubs, bars and cafes. Holiday accommodation and admission fees to tourist attractions are also included.<\/p>\n

Businesses can choose to pass on the VAT reduction to customers and benefit from increased footfall or pocket the savings.<\/p>\n

Flat rate scheme<\/strong><\/p>\n

Flat rate percentages have been correspondingly reduced and these will also continue through to 31 March 2021. For example, the rate for restaurants and takeaways has been cut from 12.5% to 4.5%. Given the reduced rates do not apply to alcohol sales, any decision on joining or leaving the flat rate scheme is currently quite complex. Professional advice is essential.<\/p>\n

Some anomalies<\/strong><\/p>\n